Prospective Resources Estimates

JERSEY, CHANNEL ISLANDS--(Marketwire - Mar 29, 2012) -

March 29th, 2012

LONGREACH OIL AND GAS LIMITED

Prospective Resources Estimates

Longreach is pleased to announce prospective resource estimates for
offshore licences Foum Draa and Sidi Moussa, independently evaluated
for the Company by Netherland, Sewell & Associates Inc. (NSAI), in
accordance with NI 51-101 disclosure requirements.

NSAI have estimated unrisked prospective resources, as of 31st December
2011 for 14 identified prospects and 8 additional leads located in the
Foum Draa and Sidi Moussa licences, offshore Morocco. The prospects
are Triassic to Paleocene in age and there are a variety of trapping
mechanisms such as tilted fault blocks, stratigraphic pinch outs and
salt related traps over and against salt diapir flanks. The reservoir
rock types are mainly sandstones, but there is also a shelf edge
Jurassic carbonate play.

Unrisked prospective resources have been estimated as follows:


                        Unrisked Prospective Resources
                 Gross   (100 Percent)   Longreach   Gross Interest (1)
                  Oil        Gas           Oil             Gas
Category        (MMbbl)     (Bcf)        (MMbbl)          (Bcf)


Low Estimate     751.7      302.9         56.4            22.7

Best Estimate   2138.8     1008.5        160.4            75.6

High Estimate   6105.3     3145.3        457.9           235.9

(1) Figures calculated net of ONHYM's 25% back in, giving Longreach with
  a 7.5% working interest

Unrisked prospective resources are the arithmetic sum of multiple
probability distributions. Longreach owns a 7.5% interest in these
prospects and leads. A copy of NSAI's report has been filed on SEDAR.

A dataroom to attract industry partners ahead of commencing a drill
campaign was opened on 22nd February and will remain open until 4th May
2012. 18th May has been set as a date for receiving note of Interests
from prospective farminees, with final bids to be received by 15th June
2012.

Commenting, Bryan Benitz, Chairman and CEO of Longreach, said: "Management
believes that these unrisked prospective resource estimates reinforce the
excellent work that Technical Operators, Serica Energy have done on these
licences over the past two years and demonstrate the significant potential
these licences have. The largest identified prospect, Apricot, is a
stratigraphic pinch out play concept with dual target potential. NSAI's
report states the best estimate of unrisked prospective resources to be
584 MMbbls and 350 Bcf for this dual target prospect, which management
believes is significant in its own right.

The dataroom has already attracted significant interest and we look
forward to concluding this process in June."

-ENDS-

For Further Information:

Longreach

Bryan Benitz            Chairman & CEO               +44 20 3137 7756


Pelham Bell Pottinger

Mark Antelme / Philip Dennis / Rollo Crichton-Stuart +44 207 861 3232


Additional information on Longreach Oil and Gas Limited can be found at
 www.longreachoilandgas.com  or through Longreach's investor relations
agent

Additional information on Longreach Oil and Gas Limited can also be
found at  www.sedar.com 


About Longreach:

Longreach holds varying interests in five exploration licences in
southern onshore and offshore Morocco, totalling approximately 13
million acres of exploration acreage.

In the Essaouira basin in Central Morocco, Longreach operates and holds
a 50% working interest in three exploration blocks collectively known
as Sidi Moktar. According to information available from the Office
National des Hydrocarbures et des Mines (ONHYM), historical production
of 30.5 Bcf was achieved on the Sidi Moktar exploration licences. The
onshore Sidi Moktar licence surrounds the existing producing Meskala
field (which is not a part of the Sidi Moktar licence), with gas
pipeline infrastructure in place that runs through the permit area.
Tie in to this pipeline is believed by management to be achievable,
with gas expected to be piped to the town of Youssoufia, where major
phosphate plants exist with unmet natural gas demand.

The Company holds a 22.5% net interest in the Tarfaya onshore licence.
Multiple prospective structures have been identified based on current
2D seismic and the Company's joint venture partners completed a new
608km 2D seismic programme in September 2011, which has shown a
considerable improvement in data quality that will allow further
assessment of the licence.

The Company holds a 22.5% net interest in Zag basin onshore licence.
In January 2012 a new 1,674km 2D seismic programme was completed.
Processing of this data is now underway.

Special Note Regarding Analogous Information

Although the Company believes that production on the Meskala field,
which is adjacent to the Sidi Moktar licences, may indicate that
production is possible on the Kechoula field, no assurance can be given
by the Company that commercial production on any of the Sidi Moktar
exploration licences will be achieved, or as to the levels of
production that may be possible on any of the Sidi Moktar exploration
licences if production is achieved.

Special Note Regarding Estimates

The unrisked prospective resources described above have been estimated
using probabilistic methods and are dependent on a petroleum discovery
being made.

Volumes described above are an arithmetic sum of multiple estimates,
which statistical principles indicate may be misleading as to volumes
that may actually be recovered. Readers should give attention to the
estimates of individual classes and appreciate the differing
probabilities of recovery associated with each. The probability
associated with the high estimate would be considered far less likely
than the best estimate, and conversely, the low estimate would be
expected to be much higher than the presented arithmetic sum.

As used in the COGE Handbook, "prospective resources" are those
quantities of petroleum estimated, as of a given date, to be
potentially recoverable from undiscovered accumulations by application
of future development projects. The prospective resources in NSAI's
report indicate exploration opportunities and development potential in
the event a petroleum discovery is made and should not be construed as
reserves or contingent resources. There is no certainty that any
portion of the resources will be discovered. If discovered, there is
no certainty that it will be commercially viable to produce any portion
of the resources.

Special Note Regarding Forwarding Looking Statements

This press release contains forward-looking statements. These
statements relate to future events or the Company's future performance.
All statements other than statements of historical fact are
forward-looking statements. Forward-looking statements are often, but
not always, identified by the use of words such as "may", "will","should",
"expect", "plan", "anticipate", "believe", "estimate","predict",
"project", "potential", "targeting", "intend", "could","might", "continue"
or the negative of these terms or other similar terms. Forward-looking
statements in this press release include, but are not limited to,
statements with respect to the completion of the farm-in agreement, the
performance characteristics of the Company's oil and gas properties,
capital expenditure programs, supply and demand for oil, gas and
commodities, prices for oil and gas, drilling plans, and realization of
the anticipated benefits of acquisitions.

Forward-looking statements are only predictions. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ materially
from those anticipated in such forward-looking statements. Some of the
risks and other factors which could cause results to differ materially
from those expressed in the forward-looking statements contained in
this press release include, but are not limited to: general economic
conditions in Canada, the Kingdom of Morocco and globally; industry
conditions, including fluctuations in the price of oil and gas,
governmental regulation of the oil and gas industry, including
environmental regulation; fluctuation in foreign exchange or interest
rates; risks inherent in oil and gas operations; political risk, the
need to obtain consents and approvals from industry partners,
regulatory authorities and other third-parties; stock market volatility
and market valuations; competition for, among other things, capital,
acquisitions of reserves, undeveloped land and skilled personnel;
incorrect assessments of the value of acquisitions or resource
estimates; any future inability to obtain additional funding, when
required, on acceptable terms or at all; credit risk; changes in
legislation; any unanticipated disputes or deficiencies related to
title matters; and risks associated with operating in and being part of
a joint venture.

Although the forward-looking statements contained in this press release
are based upon assumptions which management of the Company believes to
be reasonable, the Company cannot assure that actual results will be
consistent with its expectations and assumptions. Undue reliance should
not be placed on the forward-looking statements contained in this news
release as there can be no assurance that the plans, intentions or
expectations upon which they are based will occur. These statements
speak only as of the date of this press release, and the Company does
not undertake any obligation to publicly update or revise any
forward-looking statements except as expressly required by applicable
securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.

                    This information is provided by RNS
          The company news service from the London Stock Exchange

END